Unlevered FCF is used in DCF models to value the whole business independent of its capital structure, discounted at the WACC.
How to use the Unlevered Free Cash Flow Calculator
- EBITDA
- Depreciation and amortization
- Tax rate
- Capital expenditure
- Increase in working capital
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter EBITDA, depreciation and amortization, the tax rate, capital expenditure and the change in working capital.
Tips
- Use consistent periods (a year or a quarter) for flow figures and period-end values for balances.
- Average opening and closing balances when a ratio mixes a flow with a stock.
- Benchmark against competitors in the same industry.
- Read the ratio together with others – profitability, liquidity and efficiency tell different stories.
Common mistakes to avoid
- Using sales instead of cost of goods sold for inventory ratios.
- Mixing gross, operating and net profit.
- Ignoring one-off items that distort a single year.
Inputs explained
| Field | What to enter |
|---|---|
| EBITDA | Amount in your currency |
| Depreciation and amortization | Amount in your currency |
| Tax rate | In % |
| Capital expenditure | Amount in your currency |
| Increase in working capital | Amount in your currency |
What each result means
- EBIT = [EBITDA] – [Depreciation and amortization]
- Taxes on EBIT = max([EBIT], 0)×[Tax rate]÷100
- Unlevered free cash flow = [EBITDA] – [Taxes on EBIT] – [Capital expenditure] – [Increase in working capital]
Example values
How the main result changes when EBITDA changes and everything else stays at the example values above:
| EBITDA | Unlevered free cash flow |
|---|---|
| 450,000 | 97,000 |
| 675,000 | 274,750 |
| 900,000 | 452,500 |
| 1,125,000 | 630,250 |
| 1,350,000 | 808,000 |
| 1,800,000 | 1,163,500 |
Formula
Unlevered FCF = EBITDA − taxes on EBIT − capex − change in working capital= EBIT × (1 − t) + D&A − capex − ΔWCWorked example
Inputs — EBITDA: $900,000; Depreciation and amortization: $150,000; Tax rate: 21 %; Capital expenditure: $250,000; Increase in working capital: $40,000.
Results — EBIT = $750,000.00; Taxes on EBIT = $157,500.00; Unlevered free cash flow = $452,500.00.
Frequently asked questions
What is unlevered free cash flow?
Cash flow before interest and debt repayments.
Why is it called unlevered?
It ignores the company's debt (leverage).
Is unlevered FCF the same as FCFF?
Yes, they are essentially the same measure.
What formula does the Unlevered Free Cash Flow Calculator use?
Unlevered FCF = EBITDA − taxes on EBIT − capex − change in working capital.